America's Dollar Denominated "Toilet Paper"
How to Deflate the US Superpower and Restore Economic Sovereignty
by Matthias Chang
Global Research, December 17, 2008
It Is So Stupid To Borrow US Dollar "Toilet Papers" For Trade Finance.
There Can Be Only A Credit Crunch For Dollars If You Are Stupid Enough To Want To Be Paid And To Pay In Dollars.
Otherwise, There Is Only An Illusion Of A Global Credit Crunch.
This Is The Global Con Game By Bernanke, Paulson,.
It may have made some sense, post-World War II to dollarise international trade when the so-called “Free World” was supposedly threatened by the “Communist Bloc” and the Imperial United States was offering “protection” in exchange for financial dominance.
The imperial design for financial dominance was the Bretton Woods dollar reserve currency scheme.
Since those days, the US has been abusing its financial power by the use of its greatest invention, the “toilet paper printing press” (now, the modern “electronic printing press”) to issue irredeemable fiat money.
Now the world is flooded with trillions of this toilet paper, namely US dollars.
The US Superpower is at the very precipice of the abyss and a wrong move will plunge it into the black-hole of financial Armageddon.
The world will not face Armageddon, only the US. The rest of the world will suffer pain, deservedly so, for being so stupid in believing in the use of US toilet papers as money!
To avoid this catastrophe, Ben Bernanke and Paulson as directed by their Shadow Money-Lender masters have devised an insidious scheme. The ultimate con-game!
Basically, what they have done is to try to turn a weakness into perceived strength.
Let me explain.
Countries have been so used to trading in dollars that they cannot think otherwise. They continue to borrow dollars to finance their imports. Their corporations continue to borrow dollars to finance their business expansion. It is as if the world is addicted to dollars, as a drug addict is addicted to cocaine and or crack!
The world has been brainwashed into thinking that without the US toilet paper, their global economy would come to a grinding halt.
Yet this is exactly the state of mind of governments and central banks all over the world. China is a case in point: blind reliance on the US dollar. But fortunately, they have other strengths which will see them through this painful period.
Taking advantage of this temporary idiotic global mindset, the Fed and the US Treasury have deliberately triggered a credit crunch for US dollar denominated toilet papers. The major global banks are hoarding the toilet papers and with-holding cross-border financing of every kind.
There is an ocean of toilet paper (literally in the trillions) but there is now created, a deliberate shortage of these very same toilet papers.
But where is the money? There is no money. It is an illusion!
What a ridiculous contradiction. But that is the present reality. The Fed has stated that they will pump US$8.5 trillion to resolve the crisis! You have to give credit where credit is due. This is indeed a brilliant con-game and the whole world has fallen for it hook, line and sinker " almost the whole world!
I refuse to accept this state of affairs.
Yet, the Nobel Laureates in economics have missed this stark reality by a thousand miles and are coming up with all kind of theories for the present global credit crunch of US toilet paper. Alternatively, it may be that as paid-scribes, they have been directed to spew economic nonsense to confuse other economists.
How was this illusion set up?
This happened when all of a sudden, and in total connivance, Brazil, Mexico, South Korea and Singapore got into the act by entering into swap facilities with the FED, each requesting a hefty US$35 Billion to “overcome their liquidity problems.” These countries could not get enough toilet papers! Wow!
Even the great magician Houdini would not have come up with this grand illusion of shortage in currency when there is an ocean of funny money. But it is an illusion and a stupid one at that.
So now, Bernanke and Paulson is advertising to the whole world, that they are prepared to do anything and use all financial weapons, including financial nuclear weapons to defeat the crisis.
For those countries that are short of toilet papers, the US will be the global guarantor and will be willing to lend trillions of toilet papers to help them weather the financial crisis and the credit crunch. How generous of the FED and the US Treasury. But there is a catch.
The catch being " countries must continue to use the worthless toilet papers in global trade.
In one masterful stroke, the US has created an artificial demand for dollars thereby rescuing in the short term the plunging value of the dollar.
Since the global banks are not willing to lend and are insolvent, the mighty FED, the nasty and abhorrent creation of the global Shadow Money-Lenders, will be the lender of last resort to the whole world. It will be business as usual. That is what they hope. This is their final gambit. The last magic show!
And as I have written earlier, this is the OBAMA’s GAMBLE!
Countries need not trade in dollars, as after all, they are not even BUYING “MADE IN AMERICA GOODS”. AMERICA IS A NET IMPORTER, NOT EXPORTER.
So central banks of the world, especially the Third World, and the emerging powers of China and Russia: you have no need for US toilet papers when you sell your national products to countries other than the US.
And in so far as the U.S. is concerned, why are you demanding to be paid in toilet papers? Why are you not demanding payment in your own currency?
China and Russia are at the present moment on the wrong course. They hold trillions of US dollar denominated debts but act as if they are at the mercy of the US, fearing that if they do anything unfavourable to US or cahllenge the hegemony of the greenback, there will be a massive slump in the value of the dollar.
But that is a given in any event. So why play a game that has been rigged in the favour of the global Shadow Money-Lenders.
There is no reason why Russia and China should be in a recession or experience slower growth. They are suffering from the present so-called credit crunch because they continue to manage their economies in dollar terms and in a dollar mindset.
The US is playing suicide poker and calling one last card. They have nothing on the table but toilet paper.
The US will collapse in a minute, if not sooner if China and Russia were to categorically call the US’s bluff and say:
1) Close down the derivative casino now!
2) Buy back all the toxic wastes which you have unloaded on the unsuspecting global economies with currencies of our choice!
3) Since the US is in debt, the US must now borrow in the currencies of our choice to repay past debts and new loans!
Failure to comply will result in a credit crunch to US banks and companies. US can continue to use domestically their worthless toilet papers (to wipe the **** off the ceiling fans, if there are any left hanging from the ceilings) but there will be no more credit in toilet papers. Period. There will be loans only in other currencies.
This is the checkmate. .
So China and Russia should wake up and do what is necessary to save their economies as well as the global economy or their economies will end up in the **** hole as they are now playing the US / UK rigged game.
I am not surprised at the present state of mind of Chinese and Russian bankers. They have sent some of their best brains to be trained in Harvard etc., and by the fraudsters in Goldman Sachs, JP Morgan Chase, Merrill Lynch, Citigroup etc. They have all been infected with the Ponzi disease and as such cannot think otherwise. Otherwise, how do you explain their mental paralysis?
This is a simple financial puzzle.
There is no credit crunch. There is only a false or an illusion of credit crunch for US toilet papers.
Once there is no demand for dollars, there will be no credit crunch for dollars. The Shadow Money-Lenders con-game will be exposed for what it is " a giant fraud. Not unlike that of Bernard Madoff, only a thousand times more insidious and toxic.
I hope that I have made myself absolutely clear to the financial officials in Russia and China.
If China and Russia and the third world continue to stand pat, these economies deserve to be in the dog house.
Bernanke and Paulson are going to destroy the US and the global economy so as to fulfil the grand design of the Shadow Money-Lenders. Stop them before it is too late.
The Count-down has started!
Matthias Chang is a prominent barrister and author based in Malaysia. His website is www.FutureFastForward.com
Global Research Articles by Matthias Chang